Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
CBK Governor Dr. Patrick Njoroge/CFM


Repayment period of personal loans extended by one year as borrowers feel the heat of coronavirus

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March 2 extended by up to one year.

Central Bank of Kenya governor Patrick Njoroge said the move would alleviate the adverse economic effects borrowers may face due to the ongoing coronavirus pandemic.

“People had borrowed personal loans; some may lose their jobs because of this pandemic, so they may not have the money to service these loans,” Njoroge said, urging borrowers to contact their banks to get the extension.

In a bid to save the private sector, Njoroge has also ordered for the assessment and restructuring of loans being serviced by medium-sized businesses and corporate borrowers.

The banks, Njoroge said, will meet all the costs related to the extension and restructuring of loans.

“While the extent of the adverse effects is still evolving, it is already evident that the impact on some of the customers may be severe.”

A report by Cytonn Investments reveals that most businesses expect to be disrupted in several ways, among them stock-outs and delayed deliveries due to the lockdown, reduced demand for export products and difficulty in obtaining credit from financial institutions as well as reduced ability to meet their loan interest payments.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Ask Kirubi

The truth is, every crisis while totally disconcerting, also has seeds of opportunity. As an entrepreneur, are you pivoting your business through some kind...